Planning to open up a business in Nepal? One of the initial and most important steps is to get your Business PAN. You might have heard the term, but what is it really and why is it such a big deal?
It’s like your business ID card — without it, you can’t officially run your business the legal way. From making tax payments to opening a business banking account, a PAN number brings it all in order. In this guide, we’re going to explain exactly what is a Business PAN, why you need one and how to get one — step-by-step.
What is Business PAN?
Similar to Personal PAN, a Business PAN is a unique identification number provided for the purpose of tax obligations and to ensure the business is complying with the Tax laws of the country. In NEPAL, it is provided and managed by the IRD (Inland Revenue Department).
IMPORTANCE of Business PAN
- Legal Compliance: Operating a business with a business PAN is a legal requirement under the Income Tax Act.
- Taxation: A PAN is necessary for filing income tax returns, paying taxes and claiming tax credits.
- Business Transactions: Banks and financial institutions require a PAN for opening business accounts and processing transactions under the business name.
- Government Contracts: Participation in government tenders and contracts often necessitates a valid PAN.
Who Needs To Register?
The following entities are required to register for a Business PAN:
- Sole ownerships
- Partnership companies
- Private and public limited companies
- Non-Governmental Organizations (NGOs)
- Cooperatives
- Foreign companies operating in Nepal
STEPS TO REGISTER
- Prepare The Documents:
The basic documents required for BUSINESS PAN registration are:
- Business Registration Certificate
- Citizenship of the business owners
- Memorandum and Articles of Association (only for companies)
- Proof of business address and/or lease agreement
- Recently taken passport size photo of the owner(s)/director(s).
……….and more.
STEP 2: Online Registration:
- Visit the IRD website:
Visit the official IRD website and navigate to the ‘Taxpayer Portal’ under ‘Online Services’.
- Initiate Online Registration:
Under ‘Registration (PAN, VAT, EXCISE)’, select ‘Application for Registration’.
- Fill the Application Form:
The application form may require you to fill:
- Type of form: PAN, VAT, Income Tax, Excise or With Holder Pan. Select PAN in this section.
- Business name, type and address.
- Details of owners and/or directors.
- Estimated annual turnover.
- Nature of goods or services offered
…..and so on.
(Upload scanned copies of the required documents.)
STEP 3: VERIFICATION:
After the submission of the online application;
- Print the Online Application.
- Collect the Original and copies of the documents.
- Visit the IRD office for verification by the concerned officer.
STEP 4: Issuance of Business PAN Certificate:
- Upon successful verification, you will be issued your unique Business PAN certificate by the IRD.
- This certificate is your evidence of registering your business PAN and you are obligated to showcase this certificate in your workplace.
- If you have more than one business location, then post a certified copy at every one.
Additional Information
- Processing Time: The registration process will normally take two business days to complete, depending on how detailed the application is along with document verification.
- Fees: There are no fees for PAN registration.
- Updates and Changes: Changes in business information have to be updated with the IRD for maintaining records.